In Brief
Montecarlo Ltd bid to develop and operate coal mines under NTPC's tender. NTPC rejected the bid as technically non-responsive, finding Montecarlo lacked necessary drilling experience for blasting purposes. Montecarlo challenged this rejection in the High Court, arguing its lignite mining drilling experience met the tender's requirements. The High Court upheld NTPC's decision. The Supreme Court dismissed Montecarlo's appeal, holding that in complex technical tenders, the employer (NTPC) is best positioned to interpret tender documents and assess technical qualifications. Courts cannot substitute their judgment for technical experts and must defer to the owner's reasonable interpretation unless mala fide or arbitrary.
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